MONTREAL — Stella-Jones Inc., a North American manufacturer of infrastructure products, including pressure-treated wood products and industrial lumber products, has unveiled its financial objectives and capital allocation priorities for the 2026-2028 period, and present its future growth strategy at its 2025 Investor Day, to be held in Toronto, Ontario.

“Our disciplined execution and accretive investments have positioned Stella-Jones to deliver industry-leading results year after year,” said Eric Vachon, president and CEO of Stella-Jones. “Building on a strong foundation of consistent growth and operational excellence, we’ve strengthened our ability to act on new opportunities, invest with discipline, and create enduring value for our stakeholders. These priorities reflect our confidence in the path ahead and commitment to driving profitable, long-term growth.”

“Our recent acquisitions in new and adjacent product offerings have set the stage for the next phase of our growth. Supported by a strong balance sheet, seasoned leadership, and a disciplined focus on value creation, Stella-Jones is well-positioned to be the partner of choice to utility and railroad companies across North America,” he concluded.

Stella-Jones is introducing a three-year financial objective framework that will be rolled forward each year, starting with the publication of the Q4 2026 financial reports, in order to maintain a three-year horizon.

In this outlook period, the Company has introduced an EPS-based target, replacing the dollar-based return metric. EPS will provide a more comparable view of performance across different capital deployment strategies and is better aligned with the Company’s growth strategy.

The three-year financial objectives for the 2026-2028 period are as follows:

Over the outlook period, the EBITDA-to-free cash flow conversion is expected to remain consistent with the Company’s recent performance, representing a conversion rate of approximately 50%. Stella-Jones’ strong cash flow profile underpins its capital allocation strategy, which is centered on four key priorities:

• Maintenance capital expenditures: investment of ~2.5% of sales annually, which translates to $85 to $95 million of capital expenditures per year.
• Strategic growth opportunities: investment in strategic capital expenditures and pursuit of value-accretive acquisitions.
• Dividends: maintain a consistent dividend payout, targeting dividends equivalent to 20% to 30% of the prior year’s reported earnings per share.
• Share Repurchases: opportunistic repurchases aligned with strategic priorities and leverage targets, providing flexibility to act on growth opportunities.

The company remains committed to maintaining an investment-grade credit rating and a net debt-to-EBITDA ratio within the range of 2.0x-2.5x, with flexibility to deviate temporarily for working capital requirements and strategic investments.

The 2026-2028 targets are based on the following assumptions:

• Wood utility poles achieving mid-single digit organic sales growth.
• Railway ties achieving low-single digit organic sales growth.
• Residential lumber achieving $600-$650 million of annual sales.
• Recent acquisitions resulting in additional sales of ~ $225 million by 2028.
• Excludes impact of any M&A activity completed after the publication of this press release.
• US/CAD exchange rate remaining in line with current rates.